In most cases a student loan taken out for education expenses cannot be discharged through bankruptcy. The student may not get a job that pays what he expects. It is possible he will still owe these loans years later. Advice on what can be done is available in the office of a Jacksonville FL Bankruptcy Attorney.
Bills owed to credit card companies or utilities can be discharged by a chapter seven. The student loan is owed to the government. In most cases it cannot be forgiven. Only one situation may allow it to be discharged.
If making the payments is the cause of undue hardship it is possible that such a loan can be forgiven. Undue hardship means there will not be enough income to finance the necessities of life plus make loan payments. When these circumstances exist the court will require solid proof.
When claiming undue hardship, the individual may not be paying for cable television, internet service or even a cell phone. Proof must be provided that income level is not likely to go up in the near future. It is only applicable if loan payments would prevent the client from paying rent or buying groceries.
His lawyer will file the required paperwork in federal court to seek an undue hardship status. This can be done in a chapter seven only because it discharges debt completely. A chapter thirteen, on the other hand, allows the petitioner to pay off his bills over a period of time.
The Chapter 13 petitioner must be earning a sufficiently high income. It must enable him to afford living expenses plus make the required loan payments. All interest on the debt will cease for the duration as soon as the court proceedings are finished. He is usually given five years to repay all debt.
A lawyer will often give the client a free consultation to explore what options he has. Following that, he files paperwork with the federal court. There are charges for filing and attorneys fees to be discussed. In addition, the court charges an administration fee for administering the account and distributing funds to the creditors.
Bills owed to credit card companies or utilities can be discharged by a chapter seven. The student loan is owed to the government. In most cases it cannot be forgiven. Only one situation may allow it to be discharged.
If making the payments is the cause of undue hardship it is possible that such a loan can be forgiven. Undue hardship means there will not be enough income to finance the necessities of life plus make loan payments. When these circumstances exist the court will require solid proof.
When claiming undue hardship, the individual may not be paying for cable television, internet service or even a cell phone. Proof must be provided that income level is not likely to go up in the near future. It is only applicable if loan payments would prevent the client from paying rent or buying groceries.
His lawyer will file the required paperwork in federal court to seek an undue hardship status. This can be done in a chapter seven only because it discharges debt completely. A chapter thirteen, on the other hand, allows the petitioner to pay off his bills over a period of time.
The Chapter 13 petitioner must be earning a sufficiently high income. It must enable him to afford living expenses plus make the required loan payments. All interest on the debt will cease for the duration as soon as the court proceedings are finished. He is usually given five years to repay all debt.
A lawyer will often give the client a free consultation to explore what options he has. Following that, he files paperwork with the federal court. There are charges for filing and attorneys fees to be discussed. In addition, the court charges an administration fee for administering the account and distributing funds to the creditors.
About the Author:
Get excellent bankruptcy tips, today. You can also get more information about a reliable Jacksonville FL bankruptcy attorney at http://www.woodatter.com/ right now.
No comments:
Post a Comment